Irish wholesale gas prices are down 35% compared to this time last year

Gas prices are down 10% on last month, while there was a 3.5% decrease in wholesale electricity prices compared to July.

by Maeve McLaughlin

on 29th August, 2016

The latest Wholesale Energy Market Report published by Vayu Energy makes for an interesting read, with prices continuing to fall.

Gas prices

Wholesale gas prices are down 35% on average this month compared to August 2015, with the drop being linked to on-going healthy supply, decreased demand year-on-year and the decrease in the price of oil.

We are currently in the period of the year where demand for gas is at its lowest, which explains the fact that gas prices are down 10% when compared with July.

Vayu has said that, in addition to the ‘abundant supply’ we’re seeing at the moment, there could be declines to winter prices, too - as sterling continues to perform poorly against the euro following Brexit.

Electricity prices

The average wholesale price of electricity was down 27% compared with August 2015 and down 3.5% compared with last month. The year-on-year drop is mainly due to lower prices for gas, which is the main energy source used to generate electricity in Ireland.

What does this mean for consumers?

So far, we haven’t really seen energy prices falling at the same levels as wholesale prices, but there are still some good deals to be found in the energy market at the moment.

For example, the average dual fuel customer can save up to €335 by switching from standard tariffs to the cheapest deals on the market. So it’s still worth taking the time to compare deals and see if you can make a saving.